MCQ's for Company Law
Question. Principle: Every manufacturer of consumable articles is liable to take care to manufacture such articles with due care and without negligence so that the ultimate consumer is not adversely affected by the products. Factual Situation: A, with the intention of buying a pair of shoes, went to a retail shop and asked for a pair of shoes. The retailer gave A, a pair of shoes manufactured by Z & Co., to try out. While trying to put on the shoes A’s leg was cut by a nail that was inside the shoes, left by workers of the manufacturing company. A sustained injuries and had to be treated in a hospital. |
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| (a) Z & Co. is not liable as A has not bought the pair of shoes. | (b) Z & Co. is liable as A was given the pair of shoes to try out by the retailer without checking the same. |
| (c) Z & Co. is liable as A was a prospective buyer and hence the company is liable. | (d) Z & Co. is not liable as shoes is not an article for consumption. |
Answer. (c) Z & Co. is liable as A was a prospective buyer and hence the company is liable. |
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Question. Principle: No person has a remedy if he has himself consented or volunteered to incur the risk. Factual Situation: A and B are workers in the Metro Rail construction working in two different sections. One day both of them decided to go for a movie at 6:00 pm, after their work. A completed the task assigned to him by the management by about 5:00 pm while B could not complete his work even at 5:30. B requested A to help him to complete the work so as to enable them to go for the movie as planned. A agreed and started work. Suddenly an electrical transformer at the work site exploded and both A and B got injured. Both A and B claim compensation for the injury from the employer. |
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| (a) Neither A nor B will get any compensation because the injury was due to the explosion of an electrical transformer. | (b) A will not get any compensation as he took a risk to assist B. |
| (c) A will get compensation because B asked A to assist him and hence A did not take any risk voluntarily. | (d) Both A and B will get compensation as both of them were working for their employer |
Answer. (b) A will not get any compensation as he took a risk to assist B. |
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Question. Principle: An occupier of a premises owes a duty of care to all his invitees and visitors. Factual Situation: P was the owner of a big plot with a bungalow surrounded with a compound wall. He was constructing a lotous pond by the side of the drive way. Since the work was in progress, the contractor used to cover the pond with bamboos and gunny bags. One day the local postman who came to the bungalow to deliver a letter fell into the pond. The postman filed a suit for compensation against P. |
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| (a) P is not liable as he did not do anything to injure the postman. | (b) P is not liable as he did not invite the postman into his premises. |
| (c) P is liable as the postman came to his premises in the course of his duty. | (d) P is liable as the contractors men negligently covered an area under construction with gunny bags. |
Answer. (c) P is liable as the postman came to his premises in the course of his duty. |
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